March 8, 2017 / 6:56 PM / 10 months ago

Investors storm into U.S. funds as bull market 'ages and rages'

    By Trevor Hunnicutt
    NEW YORK, March 8 (Reuters) - Investors pumped up their risk
in the latest week, delivering U.S.-based stock funds their
fifth straight week of net cash, Investment Company Institute
data showed on Wednesday.
    Stock mutual funds and exchange-traded funds in the United
States attracted $9.1 billion, while bond funds gathered $9.7
billion, the trade group's data showed.
    The data covers the week ended March 1, which was capped by
a buying spree that pushed the Dow Jones Industrial Average
 past the 21,000 mark for the first time as investors took
a brighter view of economic growth prospects after U.S.
President Donald Trump's first speech to Congress.
    "We continue to see investors position for a bull market
that both ages and rages at the same time, all in an environment
where monetary policy is attempting to hand the baton off to
fiscal stimulus," said Matt Bartolini, head of SPDR Americas
Research at State Street Global Advisors.
    U.S. Federal Reserve officials have increasingly suggested
they may consider raising interest rates as early as the
monetary policy meeting scheduled for next week, while Trump has
touted policies including tax cuts and infrastructure spending.
    "If there is any slippage in this delicate relay race of
monetary policy handing the baton off to fiscal stimulus, the
next leg of the rally may be a bit of an uphill climb," said
    For now, investors are shouldering more risk.
    U.S.-based equity funds that invest domestically attracted
$5.8 billion, while those invested abroad took in $3.4 billion
in their 13th consecutive week of inflows.
    Investors also added cash to U.S.-based taxable-bond funds,
a category including Treasuries and corporate debt, for the 13th
straight week. Those funds took in $9.5 billion in the latest
    The following table shows estimated ICI flows, including
mutual funds and exchange-traded funds (all figures in millions
of dollars):
                3/1    2/22    2/15     2/8   2/1/2017
 Equity       9,117   6,949  13,314   5,492     15,045
 -Domestic    5,767   3,455   8,059     814     11,769
 -World       3,350   3,495   5,255   4,678      3,276
 Hybrid        -912     -26     -52     155       -567
 Bond         9,729   6,788   8,590  11,608      9,336
 -Taxable     9,454   6,574   7,973  10,697      8,468
 -Municipal     275     214     616     911        869
 Commodity      192      35     327   1,061        413
 Total       18,126  13,747  22,178  18,315     24,228
 (Reporting by Trevor Hunnicutt; Editing by Nick Zieminski)
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